ISTANBUL

US stocks closed Tuesday higher, extending gains from the previous session as investors continued to assess developments surrounding the Iran war.

The Dow added 0.1%, or 46.85 points, to close at 46,993.26.

The Nasdaq composite increased 0.47%, or 105.35 points, to 22,479.53, while the S&P 500 rose 0.25%, or 16.71 points, to 6,716.09.

The Volatility Index (VIX), often referred to as the market’s “fear index,” dropped 4.85% to 22.37.

Investor sentiment remained closely tied to volatile oil prices and the broader fallout from the war. Brent crude, the global benchmark, climbed more than 2%, pushing back above $100 per barrel.

Despite the rise in oil, the S&P 500’s consumer discretionary sector outperformed, rising 1%, led by gains in Expedia Group and Booking Holdings. Airline stocks including Delta, American and JetBlue also moved higher after issuing strong revenue guidance. Delta's shares rose 6.5% and American Airlines' increased 3.5%.

Energy stocks led sector gains, rising more than 1% and bringing the sector’s month-to-date advance to nearly 5%.

Oil resumed its upward move after President Donald Trump said Monday that efforts to form a coalition to protect shipping through the Strait of Hormuz were still underway. On Tuesday, however, Trump wrote in a Truth Social post that the United States did not need NATO or other countries to carry out the escort mission.

“Fortunately, we have decimated Iran’s Military,” wrote Trump. “Because of the fact that we have had such Military Success, we no longer ‘need,’ or desire, the NATO Countries’ assistance — WE NEVER DID.”

While rising energy costs are heightening concerns about the inflation outlook, the issue is also expected to be on the agenda at the Federal Open Market Committee meeting this week.

Based on pricing in financial markets, the Fed is widely expected to keep its policy rate unchanged at the March 17-18 meeting.

European stocks

The stock markets in Europe also saw increases Tuesday, with the pan-European Stoxx Europe 600 index rose 0.67% to close at 602.45 points.

The UK’s FTSE 100 increased 0.83% to 10,403.6, Italy’s FTSE MIB 30 was up 1.22% to finish at 44,887.54, and France’s CAC 40 climbed 0.49% to 7,974.49.

Germany’s DAX 40 rose 0.71% to 23,730.92, while Spain’s IBEX 35 posted an increase of 0.93% to 17,248.70.